Bitcoin drops to $43.7K following Fed's re-confirmed plans to hike rates

Bitcoin price slipped below $44,000 shortly after notes from the Federal Reserve's December FOMC meeting re-confirmed plans to get the balance report under control.

Bitcoin drops to $43.7K following Fed's re-confirmed plans to hike rates

Bitcoin(BTC) and the wider cryptocurrency market fell under as equities markets pulled back at the closing bell after minutes from the Federal Reserve's December FOMC meeting showed that the controller is committed to decreasing its balance sheet and expanding interest rates in 2022.

As stock markets corrected, BTC price followed suit by dropping under $44,000 setting off a cascade of liquidations that came to reach $222 million in under an hour.

According to Cointelegraph Markets Pro and Tradingview shows that after oscillating around support at $46,000 for the past couple of days. Bitcoin was hit with a wave of selling that pulled the price to an intraday low of $43,717.

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Based on the current circumstance, it is generally expected that the fed will start raising its benchmark interest rate in March. "which would mean that balance sheet reduction could start before summer."

Here's a look at what crypto experts are talking about the latest Bitcoin price drop in BTC and what could be in store in the weeks ahead as the easy money policies of the Fed come to an end and interest rates start to decrease.

Capitulation looms below $44,000

A foreshadowing of Jan 5% pullback was presented by crypto analyst and pseudonymous Twitter user Rekt Capital Who posted the following chart highlighting the "many similitudes between this BTC range and May 2021."

A foretelling of Jan. 5's pullback was presented by a crypto investigator and pseudonymous Twitter client Rekt Capital who posted the accompanying outline featuring the "numerous similitudes between this BTC range and May 2021."

Rekt Capital said,

“Both saw BTC consolidate inside two Bull Market EMAs (i.e., green 21-week & blue 50-week EMA). If BTC is to repeat history, a capitulation event could take place where BTC briefly deviates below the blue 50 EMA.”

BTC needs to reclaim $46,000

A more in-depth look at the price value from May was presented by expert and Cointelegraph contributor Michael van de Poppe. who posted the following chart detailing BTC's performance during the last sharp market pullback.

van de Poppe said,

“And the scenario of the drop beneath $46K is taking place on Bitcoin here. The question becomes will we be hanging here, taking the liquidity & breaking back above $46K? In that case, the bottom is in.”

Should the price not break above $46,000 the market could be in for an extended bear time that can possibly see BTC retrace to the low $30,000 range.

The scenario as of now facing the market was succinctly addressed in the following graph posted by options trader and pseudonymous Twitter user Nunya Biznic.

Nunya Bizniz said,

“BTC monthly: Drops below the current RSI level have been ugly. This time?”

The overall cryptocurrency market cap presently remains at $2.123 trillion and Bitcoin's dominance rate is 39.4%

Read: Crypto Market Cap Lost $250 Billion in 3 Days as BTC Slid to $46K